The United Arab Emirates (UAE) partnered with Israeli-French billionaire Patrick Drahi in the ownership of Sotheby's, one of the world's leading auction houses. The government investment fund ADQ announced it would invest $1 billion and become a minority partner after Drahi's negotiations with Qatar's investment fund fell through due to the war in Gaza.
Reports suggested Qatar, which has hosted Hamas's political offices since 2012 while providing hundreds of millions of dollars in aid to Gaza, was reluctant to engage in a public deal with a prominent Israeli figure like Drahi at this time.
Drahi, who also owns Israeli broadcaster HOT and the i24 News network, is facing a difficult financial situation amid growing debts amounting $60 billion. His fortune, which was estimated at around 16 billion at its peak, has dwindled in recent years to about $6 billion.
Abu Dhabi's new investment is expected to allow Drahi to remain the majority owner of Sotheby's — a matter which was reportedly of great importance to him.
Last month, Sotheby's paid a massive £66 million dividend to Drahi, despite a decline in its financial performance. "The directors remain confident in Sotheby's long-term success and continue to invest selectively in global initiatives," read a statement signed by the company’s board of directors.
Drahi, 60, who was born in Morocco and immigrated to France, now lives in Switzerland and frequently travels by private jet to Tel Aviv, Paris, London, and New York. He built his fortune by acquiring small telecommunications companies and founded Altice Group in 2001.
He purchased Sotheby’s in 2019 for $3.7 billion. Since then, he has faced significant financial challenges, but Abu Dhabi's new investment provides him with substantial support to continue his ventures in the art and luxury sectors.
"Our investment underscores our firm belief in the enduring value of Sotheby’s brand, market-leading platform and the ability of its management to execute on their growth agenda," said ADQ Deputy CEO Hamad Al-Hammadi.
Sotheby's CEO Charles Stewart added the partnership with the fund “will enable us to accelerate our strategic initiatives, expand our commitment to excellence in the art and luxury markets, and continue to innovate to better serve our clients around the world.“